FORWARD RISK PREMIA AND THE MATURITY OF CONTRACTS: A NOTE

This paper examines the behavior of the risk premium component of currency forward rates. Analyzing forward rates of one, two and three-month maturity, we find that the power of forward rate as a predictor of future spot rate decreases with the length of contract maturity. Further, we find that the proportion of the variance of the forward premium which is due to the variation of the risk premium is larger than the proportion due to the expected spot rate change for all currencies except for the Canadian dollar. This proportion also increases with the length of maturity.     

On the Role of Futures Trading in Spot Market Fluctuations: Perpetrator of Volatility or Victim of Regret?

We examine the role of index futures trading in spot market volatility. We use the exponential generalized autoregressive conditional heteroskedasticity (EGARCH) approach to measure volatility, analyze causality and feedback relations between volatilities in the spot and futures markets, and test various hypotheses in the context of a multivariate model that incorporates other macrostate variables. Our empirical results suggest index futures trading may not be blamed for the observed volatility in the spot market. Rather, we find stronger and more consistent support for the alternative posture that volatility in the futures market is an outgrowth of a turbulent cash market. We use the regret (cognitive dissonance) theory to explain our results.     

The impact of foreign direct investment and trade on economic growth Taking China, Korea, Malaysia, Philippines ＆ Thailand for example

In this study the authors make efforts to survey the impact of foreign direct investment and trade on the economic growth of five East Asian countries, China, Korea, Malaysia, Philippines and Thailand. Using an augmented production function （APF） growth model, the authors apply panel data Method and data span is from1980 to 2006. The required data are extracted from World Development Indicator 2008. The result shows that a co-integration relationship between growth and its determinants in the APF model is supported. Firstly, the study shows that with the increasing the inflow of foreign direct investment, positive impact on growth in Thailand, Korea and China is proved. However, this impact is negative in Philippine and Malaysia. Also the impact of trade on economic growth has the same result with FDI impact in sign. Further, the impact of labor force on growth is not significant in these countries and the effect of gross fixed capital on growth is positive and has a very high impact on selected countries.     

Wages, inflation, and mortgage design

By virtue of creating asset-liability mismatch, conventional long-term, fixed-rate mortgage loans inherently introduce excess interest risk to the financial systems. Considering that inflation is in part the reason for this excess interest risk, it seems natural to redesign mortgages in such a way that over time mortgage payments could, at least in part, reflect inflation. In this paper, I show that by allowing payments to adjust to inflation, particularly that of wages, by incorporating a prespecified growth rate into mortgage payments, mortgage loans become more affordable while bank interest spreads become less volatile, making the banking system less unstable.     

Social Network and Weight Misperception among Adolescents

It is recognized that public health intervention targeted toward changing lifestyle behaviors to reduce overweight status is a considerable challenge. It is important that individuals recognize their overweight status as a health risk in order for an effective change in lifestyle behaviors to occur, and growing evidence suggests that actual weight and perception of weight status often do not match, especially among adolescents. In this article, we explore the extent to which exposure to heavier peers and parents affects misperception of their own weight status by adolescents. Using data from a nationally representative sample of adolescents, we estimated instrumental variable models with school‐level fixed effects to account for bidirectionality of peer influence and environmental confounders. Our results indicate that individuals who live in an environment that exposes them to overweight/obese parents and heavier peers tend to misperceive their weight status and think of themselves to be of lower weight than they actually are. Our analysis also revealed differential effects by gender and type of peers.     

Cross-sectional determinants of bank performance under deposit dollarization in emerging markets

Dollar-denominated deposits and loans could increase financial fragility in emerging market banking systems. This currency mismatch does not only increase banks' currency risk when the proportion of dollar-denominated loans with respect to local-denominated loans increases but also it increases their clients' default risk if depreciation occurs. This paper investigates the profitability of 36 dollarized banking systems. Results suggest that after controlling for some macroeconomic and institutional variables, dollarization, as the currency mismatch hypothesis suggests, depresses bank performance and lowers bank profitability. Results also show that the effect of institutions more than offsets the negative impact of dollarization on banks' profitability.     

Do Institutions Matter for Foreign Direct Investment?

Using a panel of 69 countries during 1981 and 2005, we investigate the role of institutions in determining foreign direct investment (FDI). We find that institutions are a robust predictor of FDI and that the most significant institutional aspects are linked to propriety rights. Using a novel data set, we also study the impact of institutions on FDI at the sectoral level. We find that institutions do not have a significant impact on FDI in the primary sector but that institutional quality matters for FDI in manufacturing, and particularly in services.     

On uniform convergence of undiscounted optimal programs in the Mitra–Wan forestry model: The strictly concave case

In this paper, we show that the 1986 Mitra–Wan result establishing asymptotic convergence of maximal programs to the unique golden-rule forest in the case of undiscounted, strictly concave felicity functions can be strengthened, in the same setting, to the  uniform  asymptotic convergence of  optimal  programs to the unique golden-rule forest. We work with a notationally reformulated version of the model that may have independent interest.     

Consumer adoption of Internet banking in Jordan: Examining the role of hedonic motivation,habit, self-efficacy and trust

Despite the rapid growth of Internet banking (IB), customers in developing countries still hesitate to adopt this technology and its use in the Middle East remains low. This study aims to identify and examine the factors that predict behavioural intention and adoption of IB in Jordan. Four factors – hedonic motivation, habit, self-efficacy and trust – are proposed in a conceptual model. Data was collected by means of a survey with bank customers in Jordan. Structural equation modelling (SEM) was used to analyse the data. The results strongly supported the conceptual model. Further, hedonic motivation, habit, self-efficacy and trust were all confirmed to have a significant influence on behavioural intention. Trust was found to be strongly predicted by both hedonic motivation and self-efficacy. This study provides both academics and practitioners with an insight into the factors that can be used to encourage customer adoption of IB specifically in a Middle East context.     

Participatory music-making and well-being within immigrant cultural practice: exploratory case studies in South East Queensland,Australia

ABSTRACT

Music participation is a way of life for many cultures and is an activity that is often passed on generationally. It can become especially important as a leisure activity for maintenance of self- and national identity for people who have migrated to countries of contrasting cultures, such as Australia. This article describes exploratory, qualitative research into the ways in which participatory music-making within communities from immigrant backgrounds in Brisbane, Australia may influence aspects of participants’ wellbeing. The sample for this research included three broadly-defined cultural groups living in the region: people of Baltic origin; people from Latin American and Caribbean backgrounds; and ‘newly arrived’ immigrants and refugees. Interviews with individuals have been analysed to explore the ways in which this involvement might affect mental, social, and emotional wellbeing. Our qualitative analyses demonstrated that beyond these aspects, factors of subjective wellbeing, both hedonic and eudaimonic, were apparent. This article aims to provoke discussions on the divergent ways in which immigrant communities utilise music-making practices to foster different types of wellbeing and the importance of maintaining diversity through cultural practices.